Alternative Trading System (ATS)

Test yourself

Two real CIRE-bank questions on this exact outcome. Click to reveal the answer and the rule citation.

1. 1

   A client submits a written complaint alleging that a registrant recommended an unsuitable investment that caused a $15,000 loss. Under CIRO's complaint-handling requirements, which of the following is the dealer member's obligation?

   Outcome 7.1 · click for answer

   A.The dealer member forwards the file straight to OBSI and skips its own internal review

   B.The dealer member acknowledges the complaint, investigates it, and issues a timely written responseCorrect

   C.The dealer member closes the file because the client's signed risk disclosure waived complaint rights

   D.The dealer member responds once the alleged loss reaches a dollar threshold CIRO sets for complaints

   CIRO's complaint-handling rules require dealer members to have documented procedures for acknowledging, investigating, and responding to client complaints within prescribed time frames. The firm must provide a substantive response explaining its findings and, where applicable, inform the client of their right to escalate to an independent dispute resolution service such as OBSI. Signing a risk disclosure document does not waive complaint rights, and there is no minimum dollar threshold that exempts a firm from responding.

2. 2

   OBSI (the Ombudsman for Banking Services and Investments) provides dispute resolution services to retail investors in Canada. Which of the following statements correctly describes OBSI's authority?

   Outcome 7.2 · click for answer

   A.OBSI issues binding arbitration awards that always force dealers to pay a set compensation cap

   B.OBSI only accepts complaints referred by CIRO and never takes complaints filed directly by clients

   C.OBSI always holds the same enforcement authority as CIRO, including power to revoke registrations

   D.OBSI recommends compensation but cannot force payment, though it can publicly name non-compliant firmsCorrect

   OBSI operates as a free, independent dispute resolution service for banking and investment complaints. Its recommendations are non-binding: firms are not legally compelled to comply, but OBSI publishes the names of firms that decline to follow recommendations, creating reputational and regulatory consequences. OBSI does not have SRO enforcement powers and cannot revoke registrations. Retail clients may bring eligible complaints directly to OBSI after completing the firm's internal complaint process.

Related terms in Markets and Trading

• UMIR

  Universal Market Integrity Rules governing trading on Canadian marketplaces.

• Best Execution

  The obligation to take reasonable efforts to achieve the most advantageous execution for clients.

• T+1 Settlement

  Standard one-business-day settlement cycle for North American equity trades.

• CDS (Canadian Depository for Securities)

  Canada's central securities depository that clears and settles trades.

• Short Selling

  Selling borrowed securities with the intent to repurchase them later at a lower price.

• UMIR 3.3 (Short Sale Locate)

  Pre-borrow requirement: a dealer must have reasonable grounds to believe a short-sold security can be borrowed before entering the order.